Forexpros –The pound edged higher against the U.S. dollar on Wednesday, as the dollar was weighed by mounting speculation that the Federal Reserve may soon implement fresh stimulus measures to boost U.S. growth.
GBP/USD hit 1.6330 during early European trade, the daily high; the pair subsequently consolidated at 1.6316, inching up 0.09%.
Cable was likely to find support at 1.6211, the low of August 26 and a two-week low and resistance at 1.6422, Tuesday’s high.
The minutes of the Fed’s August policy-setting meeting, released Tuesday, showed that some policymakers pushed for more aggressive measures to stimulate growth, including buying more government bonds.
This added to speculation that the Fed may act to shore up the faltering U.S. economy after its extended two-day meeting in September.
In the U.K., a report published earlier showed that consumer confidence fell to a four-month low in August as the outlook for the economy over the next 12 months deteriorated.
The GfK NOP consumer confidence index fell for the third month in a row to minus 31 from minus 30 in July. Analysts had forecast a drop to minus 32, but the reading was still the lowest since April.
The outlook for the general economic situation in the next 12 months fell to minus 31 from minus 27.
The pound was almost unchanged against the euro, with EUR/GBP dipping 0.02% to hit 0.8856.
Later in the day, payroll processing firm ADP was to release a report on U.S. non-farm payrolls. The U.S. was also to publish data on manufacturing activity in the Chicago area and factory orders.
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